IES INDUSTRIES INC.



                                        December 30, 1993
                                        Contact:  Colleen Dykes
                                                  319/398-7288        

                                        Broadcast Line Actuality
                                        1-800-972-5321

              Iowa Electric/Iowa Southern Merger Complete

     CEDAR RAPIDS, IA---Iowa Electric Light and Power Co. and Iowa Southern
Utilities Co. will merge to form IES Utilities Inc. (IESU).  The merger
will become effective December 31, 1993, as a result of the approval
granted December 3, 1993, by the Federal Energy Regulatory Commission
(FERC).  The merger application was filed June 4, 1993.  The application
was reviewed by several regulatory agencies including FERC and the Iowa
Utilities Board.
     IES Utilities Inc. serves a total of 325,000 electric and 170,000
natural gas retail customers as well as 32 resale customers in more than
550 Iowa communities.  IES Utilities Inc. is the principal subsidiary of
IES Industries Inc. in Cedar Rapids.
     "We are pleased the merger has been completed in such a timely
fashion," said Robert J. Latham, Vice President Corporate Affairs and
Planning at IES Industries.  "This merger will provide greater certainty
for the future for IESU customers, employees and communities."
     Within five years, it is estimated that the merger will provide
benefits of approximately $15 million annually, Latham said.  The primary
source of these savings is in electric generation and transmission
planning.
     There are no proposed changes in natural gas or electric prices for
customers as a result of this merger.  Long-term expectations are for cost-
based pricing among customers classes and aggressive promotion of energy
efficiency and demand-side management programs.  Any future price changes
would require regulatory approval.
     "IES Utilities Inc. will continue to be a leader in economic
development programs that promote the state of Iowa for new business and
expansion of existing business," Latham said.  IES Utilities will have an
active environmental program, exemplified by its award-winning tree
planting effort called Branching Out.  Its demand-side management programs
and energy efficiency incentives have also received recognition nationwide.
     Lee Liu will serve as Chairman and Chief Executive Officer of IES
Utilities.